Syracuse, N.Y. — The Gem diner is expanding again, almost three years after the Syracuse landmark eatery was saved by local businessmen.

Doug LaLone, who has operated the diner since June 2011, plans to enclose an outdoor patio, adding 40 additional indoor seats to the diner, bringing its total to 170. In addition, a new outdoor patio area will be built, providing seating for up to 30 people, he said.

LaLone said the expanded seating is needed to accommodate the crowds the diner attracts, especially on weekends. Lines frequently form out the door on weekends, and some customers have told him they no longer come to the diner because of them. And with the planned redevelopment of the Syracuse Inner Harbor set to begin later this year just a few blocks away, LaLone said the timing for an expansion is perfect.

View full sizeThe Gem diner, with its stainless steel exterior, has been a Syracuse landmark for nearly 60 years. Operator Doug LaLone plans to expand its indoor seating from 130 to 170.Dennis Nett | dnett@syracuse.com

"It's just a no-brainer for us," he said. "It will double the room we have for parties."

LaLone surprised some long-time customers when he decided not to keep the diner open past 10 p.m. The Gem had a long-time reputation as a place for the late-night crowd, with a noticeable uptick in those crowds when the city's bars emptied around 2 a.m.

LaLone said he did not want the hassles that come with staying open into the early morning hours. The decision has paid off. He said business has been strong for breakfast, lunch and dinner, with a mix of business people, retirees and families coming in on a regular basis. The Gem serves 800 to 1,000 meals a day, he said.

The diner employs 26 people. LaLone said he'll hire nine more when the expansion is completed.

The newly enclosed area will sport the same stainless steel siding that the rest of the diner does. Keeping with the 1950s-era Americana theme, LaLone said he's going to put a Harley-Davidson motorcycle on the roof and park an old hot rod car next to an old-style gas pump in front of the diner.

The eatery at the corner of Spencer and Liberty streets has been a fixture in Syracuse since the late 1950s and has had several owners over the years. In March 2010, the diner closed after its owner at the time, Francis "Doc" Good, filed for bankruptcy protection.

Len Montreal and Samuel Flatt, partners in Salt City Enterprises LLC, bought the Gem in 2011. They built an addition that expanded its seating from 47 seats to 130. Then they leased it to LaLone, who changed its name from Doc's Little Gem to The Gem and reopened it. (It's open 6 a.m. to 10 p.m. every day but Monday, when it's closed.)

Montreal said work on the expansion will begin as soon as he obtains the necessary permits from the city. He hopes to have the expansion completed by June 1.

The Gem is one of 32 properties that Montreal and Flatt own in the area, which is beginning to take on the name Harbor West because of COR Development's plans to turn the Inner Harbor into a retail, residential and hotel complex. Their properties include 23 buildings that they have renovated and leased to retail and office tenants.

They recently started redeveloping the former Matlack Inc. truck garage at 450 W. Kirkpatrick St., a few blocks from the Gem. Montreal said the building will be expanded from 7,000 square feet to 14,000 square feet. He's hoping to lease it to a restaurant and a sports bar.

One of the building's tenants may wind up to be LaLone. He said he is considering opening an Italian restaurant in the building.